Senate Bill sb0398c1

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2006                            CS for SB 398

    By the Committee on Health and Human Services Appropriations;
    and Senator Saunders




    603-2005-06

  1                      A bill to be entitled

  2         An act relating to funding for social services;

  3         amending s. 394.457, F.S.; deleting provisions

  4         authorizing a reimbursement rate of 100 percent

  5         by the Department of Children and Family

  6         Services for certain services provided under

  7         the Baker Act; amending s. 394.908, F.S.;

  8         revising the methodology for distributing funds

  9         for certain substance abuse and mental health

10         services; repealing s. 402.33(10), F.S.,

11         relating to provisions authorizing the use of

12         certain excess funds for nonrecurring

13         expenditures incurred in providing direct

14         client services and for certain administrative

15         costs; amending s. 409.1671, F.S.; revising

16         provisions requiring that a statewide risk pool

17         be established for community-based providers,

18         their subcontractors, and providers of other

19         social services who contract with the

20         Department of Children and Family Services;

21         requiring that the department develop a plan,

22         in consultation with the Florida Coalition for

23         Children, Inc., regarding the long-term use and

24         structure of the risk pool; deleting certain

25         restrictions governing payments for insolvency;

26         authorizing the department to issue an

27         interest-free loan to the Florida Coalition for

28         Children, Inc.; providing an effective date.

29  

30  Be It Enacted by the Legislature of the State of Florida:

31  

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                            CS for SB 398
    603-2005-06




 1         Section 1.  Subsection (3) of section 394.457, Florida

 2  Statutes, is amended to read:

 3         394.457  Operation and administration.--

 4         (3)  POWER TO CONTRACT.--The department may contract to

 5  provide, and be provided with, services and facilities in

 6  order to carry out its responsibilities under this part with

 7  the following agencies: public and private hospitals;

 8  receiving and treatment facilities; clinics; laboratories;

 9  departments, divisions, and other units of state government;

10  the state colleges and universities; the community colleges;

11  private colleges and universities; counties, municipalities,

12  and any other governmental unit, including facilities of the

13  United States Government; and any other public or private

14  entity which provides or needs facilities or services. Baker

15  Act funds for community inpatient, crisis stabilization,

16  short-term residential treatment, and screening services must

17  be allocated to each county pursuant to the department's

18  funding allocation methodology. Notwithstanding the provisions

19  of s. 287.057(5)(f), contracts for community-based Baker Act

20  services for inpatient, crisis stabilization, short-term

21  residential treatment, and screening provided under this part,

22  other than those with other units of government, to be

23  provided for the department must be awarded using competitive

24  sealed bids when the county commission of the county receiving

25  the services makes a request to the department's district

26  office by January 15 of the contracting year. The district

27  shall not enter into a competitively bid contract under this

28  provision if such action will result in increases of state or

29  local expenditures for Baker Act services within the district.

30  Contracts for these Baker Act services using competitive

31  sealed bids will be effective for 3 years. Services contracted

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                            CS for SB 398
    603-2005-06




 1  for by the department may be reimbursed by the state at a rate

 2  up to 100 percent. The department shall adopt rules

 3  establishing minimum standards for such contracted services

 4  and facilities and shall make periodic audits and inspections

 5  to assure that the contracted services are provided and meet

 6  the standards of the department.

 7         Section 2.  Section 394.908, Florida Statutes, is

 8  amended to read:

 9         394.908  Substance abuse and mental health funding

10  equity; distribution of appropriations.--In recognition of the

11  historical inequity among service districts of the former

12  Department of Health and Rehabilitative Services in the

13  funding of substance abuse and mental health services for the

14  districts and region, and in order to rectify this inequity

15  and provide for equitable funding in the future throughout the

16  state, the following funding process shall be used adhered to:

17         (1)  Funding thresholds for substance abuse and mental

18  health services in each of the current districts, statewide,

19  shall be established based on the current number of persons in

20  need per district of substance abuse and mental health

21  services, respectively.

22         (2)  "Persons in need" means those persons who fit the

23  profile of the respective target populations and require

24  mental health or substance abuse services.

25         (3)  Seventy-five percent of Any additional funding

26  beyond the 2005-2006 1996-1997 fiscal year base appropriation

27  for alcohol, drug abuse, and mental health services shall be

28  allocated to districts for substance abuse and mental health

29  services based on:

30         (a)  Epidemiological estimates of disabilities that

31  which apply to the respective target populations.

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                            CS for SB 398
    603-2005-06




 1         (b)  A pro rata share distribution that ensures

 2  districts below the statewide average funding level per person

 3  in each target population of "persons in need" receive funding

 4  necessary to achieve equity.

 5         (4)  The remaining 25 percent shall be allocated based

 6  on the number of persons in need of substance abuse and mental

 7  health services per district without regard to current funding

 8  levels.

 9         (4)(5)  Target populations for persons in need shall be

10  displayed for each district and distributed concurrently with

11  the approved operating budget. The display by target

12  population shall show:  The annual number of persons served

13  based on prior year actual numbers, the annual cost per person

14  served, the number of persons served by service cost center,

15  and the estimated number of the total target population for

16  persons in need.

17         (5)(6)  The annual cost per person served shall be

18  defined as the total actual funding for each target population

19  divided by the number of persons served in the target

20  population for that year.

21         (7)  Commencing on July 1, 1998, all additional funding

22  pursuant to this section shall be performance-based.

23         (8)  For fiscal year 2004-2005 only, and

24  notwithstanding the provisions of this section, all new funds

25  received in excess of fiscal year 2003-2004 recurring

26  appropriations shall be allocated in accordance with the

27  provisions of the General Appropriations Act; however, no

28  district shall receive an allocation of recurring funds less

29  than its initial approved operating budget, plus any

30  distributions of lump sum appropriations or reductions in

31  

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                            CS for SB 398
    603-2005-06




 1  unfunded budget, for fiscal year 2003-2004. This subsection

 2  expires July 1, 2005.

 3         Section 3.  Subsection (10) of section 402.33, Florida

 4  Statutes, is repealed.

 5         Section 4.  Subsection (7) of section 409.1671, Florida

 6  Statutes, is amended to read:

 7         409.1671  Foster care and related services;

 8  outsourcing.--

 9         (7)  The Florida Coalition for Children, Inc., in

10  consultation with The department, shall develop a plan, in

11  consultation with the Florida Coalition for Children, Inc.,

12  based on an independent actuarial study regarding the

13  long-term use and structure of a statewide community-based

14  care risk pool for the protection of eligible lead

15  community-based providers, their subcontractors, and providers

16  of other social services who contract directly with the

17  department. The plan must also outline strategies to maximize

18  federal earnings as they relate to the community-based care

19  risk pool. At a minimum, the plan must allow for the use of

20  federal earnings received from child welfare programs to be

21  allocated to the community-based care risk pool by the

22  department, which earnings are determined by the department to

23  be in excess of the amount appropriated in the General

24  Appropriations Act. The plan must specify the necessary steps

25  to ensure the financial integrity and industry-standard risk

26  management practices of the community-based care risk pool and

27  the continued availability of funding from federal, state, and

28  local sources. The plan must also include recommendations that

29  permit the program to be available to entities of the

30  department providing child welfare services until full

31  conversion to community-based care takes place. The final plan

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                            CS for SB 398
    603-2005-06




 1  shall be submitted to the department and then to the Executive

 2  Office of the Governor and the Legislative Budget Commission

 3  for formal adoption before January 1, 2005. Upon approval of

 4  the plan, the department may expend funds from the risk pool

 5  pursuant to the provisions of the plan. by all parties, the

 6  department shall issue an interest-free loan that is secured

 7  by the cumulative contractual revenue of the community-based

 8  care risk pool membership, and the amount of the loan shall

 9  equal the amount appropriated by the Legislature for this

10  purpose. The plan shall provide for a governance structure

11  that assures the department the ability to oversee the

12  operation of the community-based care risk pool at least until

13  this loan is repaid in full.

14         (a)  The purposes for which the community-based care

15  risk pool shall be used include, but are not limited to:

16         1.  Significant changes in the number or composition of

17  clients eligible to receive services.

18         2.  Significant changes in the services that are

19  eligible for reimbursement.

20         3.  Scheduled or unanticipated, but necessary, advances

21  to providers or other cash-flow issues.

22         4.  Proposals to participate in optional Medicaid

23  services or other federal grant opportunities.

24         5.  Appropriate incentive structures.

25         6.  Continuity of care in the event of failure,

26  discontinuance of service, or financial misconduct by a lead

27  agency.

28         7.  Payment for time-limited technical assistance and

29  consultation to lead agencies in the event of serious

30  performance or management problems.

31  

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                            CS for SB 398
    603-2005-06




 1         8.  Payment for meeting all traditional and

 2  nontraditional insurance needs of eligible members.

 3         9.  Significant changes in the mix of available funds.

 4         (b)  After approval of the plan in the 2004-2005 fiscal

 5  year and annually thereafter, the department may also request

 6  in its annual legislative budget request, and the Governor may

 7  recommend, that the funding necessary to carry out paragraph

 8  (a) be appropriated to the department. Subsequent funding of

 9  the community-based care risk pool shall be supported by

10  premiums assessed to members of the community-based care risk

11  pool on a recurring basis. The community-based care risk pool

12  may invest and retain interest earned on these funds. In

13  addition, the department may transfer funds to the

14  community-based care risk pool as available in order to ensure

15  an adequate funding level if the fund is declared to be

16  insolvent and approval is granted by the Legislative Budget

17  Commission. Such payments for insolvency shall be made only

18  after a determination is made by the department or its actuary

19  that all participants in the community-based care risk pool

20  are current in their payments of premiums and that assessments

21  have been made at an actuarially sound level. Such payments by

22  participants in the community-based care risk pool may not

23  exceed reasonable industry standards, as determined by the

24  actuary. Money from this fund may be used to match available

25  federal dollars. Dividends or other payments, with the

26  exception of legitimate claims, may not be paid to members of

27  the community-based care risk pool until the loan issued by

28  the department is repaid in full. Dividends or other payments,

29  with the exception of legitimate claims and other purposes

30  contained in the approved plan, may not be paid to members of

31  the community-based care risk pool unless, at the time of

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                            CS for SB 398
    603-2005-06




 1  distribution, the community-based care risk pool is deemed

 2  actuarially sound and solvent. Solvency shall be determined by

 3  an independent actuary contracted by the department. The plan

 4  shall be developed in consultation with the Office of

 5  Insurance Regulation.

 6         1.  Such funds shall constitute partial security for

 7  contract performance by lead agencies and shall be used to

 8  offset the need for a performance bond. Subject to the

 9  approval of the plan, the community-based care risk pool shall

10  be managed by the Florida Coalition for Children, Inc., or the

11  designated contractors of the Florida Coalition for Children,

12  Inc. Nonmembers of the community-based care risk pool may

13  continue to contract with the department but must provide a

14  letter of credit equal to one-twelfth of the annual contract

15  amount in lieu of membership in the community-based care risk

16  pool.

17         2.  The department may separately require a bond to

18  mitigate the financial consequences of potential acts of

19  malfeasance, misfeasance, or criminal violations by the

20  provider.

21         (c)  The department may issue an interest-free loan to

22  the Florida Coalition for Children, Inc., for the purpose of

23  creating a self-insurance program. Such loan shall be secured

24  by the cumulative contractual revenue of the community-based

25  care lead agencies participating in the self-insurance

26  program. The amount of the loan shall be in an amount equal to

27  the amount appropriated by the Legislature for this purpose.

28         Section 5.  This act shall take effect July 1, 2006.

29  

30  

31  

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2006                            CS for SB 398
    603-2005-06




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 398

 3                                 

 4  Clarifies that Baker Act services are subject to 25 percent
    local participation.
 5  
    Modifies the method of allocating substance abuse and mental
 6  health funding to specify that 100 percent of all
    appropriation increases to these programs shall be distributed
 7  based on equity.

 8  Removes statutory restrictions on the utilization of fees
    collected by the Department of Children and Family Services
 9  (DCF) in excess of the appropriation.

10  Reassigns responsibility for the operation and maintenance of
    the community-based care risk pool from the Florida Coalition
11  for Children, Inc., to DCF.

12  Revises the requirements for operating and managing the
    community-based care risk pool.
13  
    Mandates DCF to develop a long-range plan, inconsultation with
14  the Florida Coalition for Children, Inc., and to submit the
    plan for approval by the Office of the Governor and the
15  Legislative Budget Commission.

16  Authorizes DCF to issue an interest-free loan to the Florida
    Coalition for Children, Inc., for the purpose of operating a
17  self-insurance program.

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  9

CODING: Words stricken are deletions; words underlined are additions.